Wed, October 20, 2010
Business > Markets

US stocks poised to inch back after drop

2010-10-20 13:42:25 GMT2010-10-20 21:42:25 (Beijing Time)

Stock futures rose slightly Wednesday on another crowded day of earnings reports.

Before the market opened, San Francisco bank Wells Fargo & Co. beat profit forecasts but missed slighlty on revenues, while Morgan Stanley reported a loss of 7 cents per share on special charges. Shares of both companies were down a little more than 1 percent in pre-market trading.

The banks' earnings announcements a day after stocks fell by more than a percent following by a surprise interest rate hike in China and mixed earnings reports. Shares of Bank of America fell by more than 4 percent after reports that a group of institutional bond holders that include the Federal Reserve Bank of New York are looking to force the bank to repurchase billion of dollars in mortgage bonds issued by Countrywide Financial, which Bank of America purchased in 2008.

Delta Airlines jumped 7.6 percent in pre-market trading after the company announced a profit driven by a 19 percent jump in passenger reveune. Aircraft manufacturer Boeing Co. saw its shares jump 1.9 percent after it raised its profit forecast for the year and announced that it expects to sell more commerical planes.

Ahead of the opening bell, Dow Jones industrial average futures rose 10, or 0.1 percent, to 10,984. Standard & Poor's 500 index futures rose 1.9, or 0.2 percent, to 1,165.70, while Nasdaq 100 index futures rose 5, or 0.2 percent, to 2,072.50.

West Coast Internet companies eBay and Netflix will announce how their companies fared in the third quarter after the market closes.

The Federal Reserve will issue its beige book report later Wednesday, which breaks down the health of the economy by region.

Hong Kong's Hang Seng index fell 0.9 percent. The Euro Stoxx 50 index of blue-chip companies in Europe rose 0.2 percent.

Bond prices traded in a tight range. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.47 percent from 2.48 percent late Tuesday.


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